MGNREGS running out of funds

Daily Current Affairs – August 4, 2020: It is known that civil, finance & competitive exams including UPSC, SSC, IAS, Banking, Defence, Railway & other government (central & state level recruitment exams) emphasize on ascertaining aspirants’ knowledge of recent current affairs. To develop a sound awareness of recent/latest current affairs events, reading about monthly current affairs in news or pdf format could help. Below, we have provided a daily current affairs quiz that is updated based on recent news.


  • Join our Official Telegram Channel HERE for Motivation and Fast Updates

  • Subscribe to our YouTube Channel HERE to watch Motivational and New analysis videos

Google’s Best Books for UPSC PSC Exams


Part of: GS Prelims and Mains II – Government policies and interventions for development; Welfare/Social schemes 

About MGNREGA 

  • It stands for Mahatma Gandhi National Rural Employment Guarantee Act, 2005 
  • It guarantees 100 days of wage employment in a financial year to a rural household whose adult members (at least 18 years of age) volunteer to do unskilled work. 
  • It has unique legal architecture of being demand-driven, and not budget constrained. 
  • It is social security and labour law that aims to enforce the ‘right to work’. 
  • It has provision for unemployment allowance, when the state cannot provide work 
  • Agriculture and allied activities constitute more than 65% of the works taken up under the programme. 
  • MGNREGA has helped build rural infrastructure through approximately 10 crore families. 

Problems facing MGNREGA 

  • Governments capping its financial resources and turning it into supply-based programme 
  • Workers had begun to lose interest in working under it because of the inordinate delays in wage payments. 
  • With very little autonomy, gram panchayats found its implementation cumbersome 
  • As a result, over the last few years, MGNREGA had begun to face an existential crisis. 

New concerns: 

  • The Scheme has already used up almost half its allocated funds. 
  • It spent more than ₹48,500 crore out of the expanded ₹1 lakh crore allocation announced (during COVID outbreak) 
  • In several Gram Panchayats, the approved projects have already been exhausted. 
  • A number of gram panchayats in vulnerable areas have already exhausted their funds for the scheme. 

Measures needed: 

  • Centre should allocate another ₹1 lakh crore to the scheme 
  • It has to double the permitted work limit to 200 days per household. 

Some Related Links:

How To Prepare For UPSC Prelims 2021?

UPSC CSE 2020: 75 Days Crash Course to Maximise Prelims Score

100-Days Action Plan to Clear IAS Prelims 2020

Topics-Prelims 2021

Test Series Prelims 2021

Leave a Reply